What about the simple fact that naked shorting is illegal and should be pursued and penalized. Arguments about impact are like suggesting we shouldn't chase robbers because murderers are worse.
Plus, how about a class action that goes after every entity that lends stock. to shorters. They (generally pension or other funds) are accessories in activity that impairs the original investors value.
The report I want to see is one that itemizes every vendor and amount by which they got screwed in each of his bankruptcies. You deserve what you get lending to this guy.
The margin call example doesn't fit here. Assets (generally stocks) in a margin call have a market and a market price. It may be unjustafiably deflated but it's there.
The SEC is useless. 13 days to cover is a better deal than we get when we buy and anyone who can't handle that should be subject to criminal penalties for fraud. Maybe we can get some of the state attorney generals to go after illegal shorters. Also, if you are a fund manager , don't you have to be a moron to lend your stock so someone else can drive down its value? Just wondering.
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The idea that short sales are an appropriate component of establishing stock prices is purest BS. Short selling is essentially printing counterfeit stock - particularly when the SEC doesn't have the stones to punish it when done illegaly. If I own a stock and am willing to wait out a problem it is not right that someone who does not own the stock is allowed to sell mine and drive my value down.
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Latest | Highest ratedNaked Shorting: An IM Exchange [View article]
Plus, how about a class action that goes after every entity that lends stock. to shorters. They (generally pension or other funds) are accessories in activity that impairs the original investors value.
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Also, if you are a fund manager , don't you have to be a moron to lend your stock so someone else can drive down its value? Just wondering.
Wall Street Breakfast: Must-Know News [View article]
If I own a stock and am willing to wait out a problem it is not right that someone who does not own the stock is allowed to sell mine and drive my value down.